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President Bush Pushes Immigration Reform Bill on Capitol Hill; Interview With Alabama Senator Jeff Sessions; Palestinian-on- Palestinian Violence Escalates in Gaza; "Cheese": Deadly New Drug; Stashing "Sicko"

Aired June 12, 2007 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.
T.J. HOLMES, CNN ANCHOR: And I'm T.J. Holmes, sitting in today for Don Lemon.

Well, they sat. They talked. They ate. Did they settle anything? President Bush tries to make the immigration reform bill a little easier for his fellow Republicans to swallow.

One top senator calls the closed-door luncheon democracy at its best.

You're live in the CNN NEWSROOM.

President Bush trying to keep the immigration reform bill alive, but many in his own party are dead-set against it.

We heard from the president just a short time ago, after a rare personal visit to Capitol Hill to lobby Republican senators who oppose the bill. Mr. Bush says that something has to be done, because the status quo is unacceptable.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Some members in there believe that we need to move a comprehensive bill. Some don't. I understand that. This is a highly emotional issue.

But those of us standing here believe now is the time to move a comprehensive bill that enforces our borders and has good workplace enforcement, that doesn't grant automatic citizenship, that addresses this problem in a comprehensive way.

I would hope that the Senate majority leader has that same sense of desire to move the product that I do -- or the bill that I do, and these senators do, because now is the time to get it done.

(END VIDEO CLIP)

PHILLIPS: Top Democrats want Mr. Bush to pressure Republicans to back that bill, but GOP leaders are seeing an uphill battle.

(BEGIN VIDEO CLIP) SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: Look, we had a very, very good discussion, including some of our members who are not, shall I say, keen on this measure, and others who are still taking a look at it and trying to decide how they're going to vote.

I think a lot of that will depend upon what it looks like in the end. And none of us know that yet. So, it was a good give-and-take. We didn't expect anybody to stand up and holler that they had an epiphany.

(LAUGHTER)

MCCONNELL: We had a very good discussion about the issue.

(END VIDEO CLIP)

PHILLIPS: Well, the reform bill failed to come up for a vote in the Senate last week, amid widespread Republican opposition.

He thinks the president's wrong, and he's telling him to back off. One of the strongest critics of the immigration reform bill, Republican Senator Jeff Sessions of Alabama, he's going to join us live in the NEWSROOM in just about 15 minutes.

HOLMES: Well, outside the beltway, the immigration debate is more than just a debate. But there, too, it can too lead to a major split in the same political party.

CNN's Thelma Gutierrez visits a community courting legal and illegal immigrant with taxpayer money.

(BEGIN VIDEOTAPE)

(BEGIN AUDIO CLIP, "THE RUSH LIMBAUGH SHOW")

ANNOUNCER: Rush on the EIB Network.

RUSH LIMBAUGH, RADIO TALK SHOW HOST: If this immigration bill goes through, we are doomed.

(END VIDEO CLIP)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): Ed Murray listens to Rush Limbaugh every single day.

(BEGIN AUDIO CLIP, "THE RUSH LIMBAUGH SHOW")

LIMBAUGH: We're treating the illegals as though we are doing something wrong.

(END VIDEO CLIP)

GUTIERREZ: Murray is the Republican mayor of Lindsay, California.

ED MURRAY (R), MAYOR OF LINDSAY, CALIFORNIA: I'm a member of the NRA. I'm definitely very conservative.

GUTIERREZ: But Murray says he and Rush part ways on one big issue, immigration.

Lindsay is a rural farming community three hours north of L.A. A national group voted it an all-American city. That doesn't sit well with some people, because 80 percent of the people here are Latino, some here legally, some here illegally.

MURRAY: Your kids go to school here.

GUTIERREZ: Unlike most of his fellow conservatives, Mayor Murray will tell you, immigrants are welcome here.

MURRAY: They have made Lindsay's economy. They have made the economy that we have. They have made our city to be a robust city.

GUTIERREZ: That's because Lindsay's economy is all about agriculture, mostly oranges and olives. The mayor and growers say, immigrant laborers are the city's lifeblood.

MURRAY: We do need a large work force. Be it illegal or legal, that is irrelevant. We need a large work force.

GUTIERREZ: Some say that's just breaking the law.

JOHN KEELEY, CENTER FOR IMMIGRATION STUDIES: If the only way you can exist is on the backs of illegal labor, you don't deserve to do business in our country.

GUTIERREZ: John Keeley is with a Washington think tank. He says growers would attract Americans if they just paid more.

KEELEY: I would say that they have never tried to recruit native workers, precisely because U.S. immigration policy has delivered a labor subsidy.

JAY WEAVER, PACKING PLANT MANAGER: Somebody in the city that never sees a tree hardly, they don't know what is going on here. You know, they don't know the issues we're facing.

GUTIERREZ: The mayor says ads like this offering jobs with health and retirement plans have brought no permanent takers.

The LoBue Packing House flew in workers from Thailand two years ago, an experiment that failed.

WEAVER: Their performance was so abysmal, that we canceled the whole program.

GUTIERREZ: Then came the devastating winter freeze this year that wiped out more than $400 million in orange crops in Tulare County alone.

(on camera): After the winter freeze, the city leaders worried the farm workers would leave the town of Lindsay, so they came up with city jobs to keep them employed through the next harvest...

(voice-over): ... repairing alleys, building the new football field, and maintaining public lands.

GUTIERREZ: Alberto Salaz is an orange picker who was able to stay thanks to the extra work.

ALBERTO SALAZ, FIELD WORKER (through translator): I wouldn't be able to pay my rent or bills, so I would have to leave.

GUTIERREZ: Murray says state money pays for his public works program, and immigration enforcement is up to the federal government.

(on camera): Some of the people who work on your public works project may be illegal.

MURRAY: It's possible. When a person comes across and has the proper documentation, is it our responsibility to go back and say, is this a legal card or not a legal card?

GUTIERREZ: Is it not your responsibility?

MURRAY: No, it is not.

GUTIERREZ (voice-over): Murray says, America's immigration policy is broken, because it makes it hard for people to put in a good day's work.

MURRAY: These people don't want a free handout. They want to work. They want to get ahead.

GUTIERREZ: The mayor says, hard work is a core conservative value he believes in, even if it takes him down a different road from his beloved party.

Thelma Gutierrez, CNN, Lindsay, California.

(END VIDEOTAPE)

PHILLIPS: Gun battles, mortar volleys, tit-for-tat executions, a power struggle that pits Palestinian against Palestinian.

CNN's Ben Wedeman in the West Bank city of Ramallah -- Ben.

BEN WEDEMAN, CNN CAIRO BUREAU CHIEF: Yes, Kyra, it appears that Hamas has launched a full-scale offensive in the Gaza Strip. This afternoon, they took control of a Fatah-affiliated base in the northern part of the Gaza Strip there.

Now Hamas is now announcing that they have taken over all of the northern part of Gaza. Today has been, without a doubt, the bloodiest day in this factional fighting -- according to Palestinian security sources, at least 25 people killed in the last 48 hours, more than 50.

Now, we're in the West Bank town of Ramallah, which is a Fatah- dominated city. It's relatively calm here. But, this afternoon, one, the undersecretary of transportation was kidnapped, and, according to unconfirmed reports, he was killed. Fatah is warning Hamas that, if its offensive continues in the Gaza Strip, Fatah is going to go after Hamas leadership in this area.

So, it does appear that this conflict, despite repeated cease- fires, is now open-ended. And the expectation is, things are only going to get worse -- Kyra.

PHILLIPS: And, Ben, what has triggered the activity that we're seeing right now live within these pictures? Obviously, this has gone back and forth, and this is a continual problem. But, most recently, we have seen intensified gun battle.

WEDEMAN: And, basically, this is, fundamentally, a struggle for power between Hamas and Fatah.

At the beginning of January -- in January 2006, Hamas won the elections fair and square. They were held in Gaza and the West Bank. Fatah really didn't accept the result. And I know, from the very beginning some senior Fatah officials, that it was their intention to undermine the Hamas government, using both legitimate and violent means -- Kyra.

PHILLIPS: Ben Wedeman, live from Ramallah, we will follow it. Thanks.

HOLMES: Well, they are supposed to be closely watched, but, in this case, not closely enough. Detainees at Guantanamo Bay is what we're talking about here, the camp in Cuba.

The U.S. military wants to know how one of them, a Saudi, was apparently able to commit suicide on May 30. CNN has learned, two investigations are going on, one into the death itself, the other into why guards failed to prevent it.

The heat of battle, the dead of night, together, they led to a deadly case of friendly fire at a remote checkpoint in eastern Afghanistan. Afghan police mistook U.S. troops on a night raid for Taliban rebels, and fired on them. U.S. forces returned fire, killing at least seven Afghan police officers. Five others were wounded. Afghan President Hamid Karzai calls it a tragic incident caused by a lack of communication.

PHILLIPS: For the third time in three days, Iraqi insurgents have bombed a key bridge. Today's attack happened just south of Baghdad, and just a few miles away from a bridge bombing that killed three U.S. soldiers on Sunday.

Yesterday, a truck bomb destroyed a bridge linking Baquba with other villages in Diyala Province. In all, insurgents have bombed seven bridges since March.

A model soldier is the subject of a monumental search in 90- degree heat. Authorities fear that Sergeant Lawrence Sprader got lost during a navigational training exercise at Fort Hood, Texas. Sprader phoned commanders Friday, saying that he was determined to finish the exercise.

He hasn't ever -- he hasn't been seen since, and his cell phone battery is dead. Searchers are combing the sprawling base again today. Commanders fear that Sprader may have fallen victim to heat and dehydration or could be injured. They don't believe he's AWOL.

HOLMES: Well, back to the top story of immigration -- for now, it is stalled.

But, if conservative bloggers have their way, the immigration reform bill will die; it will never come back.

Our Internet correspondent, Jacki Schechner, has the tough job of having to read through some of -- some of the -- the harsh language...

PHILLIPS: Aww.

(LAUGHTER)

HOLMES: ... that can be used on the Internet. And they can just let loose and say how they really feel sometimes on these blogs.

Hello to you. What are you hearing out there?

JACKI SCHECHNER, CNN INTERNET REPORTER: Hey, T.J. My -- my ears are not that delicate.

(LAUGHTER)

HOLMES: All right.

SCHECHNER: I think I -- I can handle it by now.

(LAUGHTER)

SCHECHNER: You know, this has been a firestorm issue on the right. And, obviously, conservative bloggers have been talking about it.

But comment and conversation is a heck of a lot different than actually taking action. And that's what the call is for now, that if, in fact, this immigration reform bill does resurrect, at this point, it's a matter of, what are we going to do?

So, conservative bloggers are pushing forward action items to contact their representatives and let them know, contact your senators, your representatives, let them know how you feel.

What's interesting, Michelle Malkin, one of the top conservative bloggers, is pointing to what she is calling the amnesty hot line. What this happens to be is a hot line set up by the other side, the Coalition for Comprehensive Immigration Reform.

We called it today. It's very easy to use. You call the number. It tells you what to say. And then you push one for your senior senator and two for your junior senator. And it puts you right through to their office.

Well, the other side has so-called hijacked it. And they have given people an opportunity. She says call up, weigh in, give your two cents, and give it often.

Another organization that's getting a big push from some of the mainstream conservative blogs is one called NumbersUSA. They call themselves an immigration reduction organization. And they have got some 400,000 members.

They are offering free faxes. Now, what you do is put your information in, and it sends a free fax to your senator or representative. But, when you say fax, you think a stack of paper that nobody's going to read. But a lot of these are actually electronic faxes. So, imagine your inbox or e-mail getting flooded with people weighing in on how they feel.

And, then, one more other organization that really doesn't need much of a push doing it on its own is called GrassFire.org. T.J., they say they have sent close to 800,000 faxes, petition signatures, and thousands of phone calls. And, today, they are saying, tell President Bush no on this immigration reform bill. They are calling for an emergency action in order to do so.

HOLMES: All right. That's from the right. And we -- we expect a lot of that, what we have been hearing.

But what about the left? Are they getting as wound up and sending as many faxes, if you will, as the right?

(LAUGHTER)

SCHECHNER: Not so much.

But they are saying, T.J., bring it on...

(LAUGHTER)

HOLMES: All right.

SCHECHNER: ... that this a really good issue that separates President Bush from the conservative base. And, if you want to debate this ad nauseam, go right ahead.

You know, there's a lot of liberal bloggers online chatting about what's going on, sort of from the grandstands, if you will, but also a conversation of how to possibly take advantage of this, that there will be a progressive agenda at some point that can be molded and pushed forward, and some conversation as to how to take advantage of that at this point -- T.J.

HOLMES: All right.

Jacki Schechner refereeing an online fight for us.

(LAUGHTER) HOLMES: Jacki, thank you so much, ma'am.

SCHECHNER: You're very welcome.

(LAUGHTER)

HOLMES: All right.

Well, of course, Senate Republicans meet the president for lunch, and they bring plenty of beef over immigration reform.

(BEGIN VIDEO CLIP)

SEN. JEFF SESSIONS (R-AL), ARMED SERVICES COMMITTEE: I think the president is wrong to push this piece of legislation so hard, after we have demonstrated the flaws that are in it. He needs to back off. He needs to help us write a better bill, and not push a bill that so many of us can't support.

(END VIDEO CLIP)

HOLMES: Well, is either side blinking? A post-lunch report from Alabama Senator Jeff Sessions, that is ahead in the NEWSROOM.

PHILLIPS: Two bucks a hit, but just once could mean you're done. Ahead in the NEWSROOM, cheese heroin continues to frustrate police and kill Texas teens.

HOLMES: And see you later, but not this gator. Atlanta gets an unexpected and not exactly welcome visitor.

The NEWSROOM is going to be right back.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's 3:15 Eastern time, and here's three of the stories we're working on from the CNN NEWSROOM.

That's Matt (ph), by the way, switching us up.

(LAUGHTER)

PHILLIPS: The status quo is unacceptable -- President Bush's words just a short time ago, after he lobbied Republican senators to try to revive the immigration reform bill. He says that now it's time to act, even though many members of his own party remain staunchly opposed to his bill.

Police in Pittsburgh looking for a teenage babysitter, after a deadly house fire that killed five young children -- the sitter was supposed to be watching them.

No foul play, say police in Jamaica about the deaths of Pakistan's World Cup cricket coach. Earlier, they had indicated the 50-year-old Bob Woolmer was strangled after losing a match, sparking all kinds of cricket conspiracy theories. Today, police say that further tests show that Woolmer died of natural causes.

HOLMES: Stalled legislation, stiff opposition, that's what President Bush is facing as he tries to revive an immigration reform bill. He left Capitol Hill last hour, after a rare visit to lobby Republican senators.

Here's what he said after that closed-door luncheon.

(BEGIN VIDEO CLIP)

BUSH: Just had a good exchange with my fellow Republicans. We talked about a lot of issues.

I briefed them on my trip to Europe. We talked about -- they were very interested in the Ahtisaari plan for Kosovo. They were interested in my conversations with Vladimir Putin on missile defense. We talked about the energy bill. We talked about the appropriations process, and we talked about immigration.

Some members in there believe that we need to move a comprehensive bill. Some don't. I understand that. This is a highly emotional issue.

But those of us standing here believe now is the time to move a comprehensive bill that enforces our borders and has good workplace enforcement, that doesn't grant automatic citizenship, that addresses this problem in a comprehensive way.

I would hope that the Senate majority leader has that same sense of desire to move the product that I do -- or the bill that I do, and these senators do, because now is the time to get it done.

It's going to take a lot of hard work, a lot of effort. We have got to convince the American people that this bill is the best way to enforce our border. I believe, without the bill, it's going to be harder to enforce the border. The status quo is unacceptable.

And I want to thank those senators on both sides of the aisle who understand the time is now to move a comprehensive piece of legislation. The White House will stay engaged.

Thank you very much.

(END VIDEO CLIP)

HOLMES: Well, Republican Senator Jeff Sessions joins us now. He thinks the president is wrong and should -- quote -- "back off."

Sir, thank you for taking some time with us.

You did say earlier in an interview that you wish the president would back off. So, tell me, first, did you tell him that to his face today? And is there any sign that he is going to be backing off?

SESSIONS: Well, I said we ought to back off and look at this thing carefully and analytically, because just passing a bill is not the solution to our problems. If the president is not committed to actual, aggressive enforcement, and if we don't have a bill that will work, then we haven't done anything. And my view is...

HOLMES: So, you don't think the president is committed to that enforcement you just mentioned?

SESSIONS: Well, he certainly stepped it up in the last couple of years. But, for the last 20 years, no president has seriously set about to enforce our immigration laws.

Good changes in the -- our legal system could help, but we are away from that. And I can point out that -- the serious flaws I see in this bill. Not that we shouldn't fix the bill -- we should fix the current law, but we have got to do it in the right way.

HOLMES: Well, what did the president -- or did he say anything in the luncheon today -- and, yes, give us a little insight into what he did say. But did you hear anything that, maybe not just flipped it up and changed your mind, but at least made you a little more inclined to -- to give this bill another chance, instead of just killing it altogether?

SESSIONS: Well, he was certainly gracious. He made clear that his friendship is not changed by someone who disagreed with him on this issue. He expressed, in heartfelt terms, why he wants to see us be a nation of immigrants and have a good system that will work.

We simply -- I think he heard good feedback from members of the conference, who explained to him what they are hearing from their constituents and why they had doubts. And then some explained why they were for the bill.

So, I think it was a real good exchange. And I think it certainly lessened the possibility of personal disagreements occurring between senators and their president.

HOLMES: Now, you said something earlier in an interview as well that you don't believe the president -- of course, he's been on this trip -- you don't think he has really had time to read this bill and study this bill.

Do you believe that, really, he hasn't read it and studied it, and is out there pushing a bill that he doesn't really understand?

SESSIONS: There's no way he could have read this entire bill and actually studied it.

For example, let me tell you some of the things that are in it and all of which basically contradict the principles of all the supporters. In fact, the bill was written more in Congress than it was by the president. It was senators that wrote the bill.

(CROSSTALK)

HOLMES: Now, surely, that's a problem, isn't it, sir, if the president is pushing a bill, and you -- I mean, you don't think he even understands it, and he hasn't even read it?

SESSIONS: And I'm not sure some of the promoters of the bill who helped write it understand it fully.

For example, the temporary visa program continues indefinitely, whether or not the trigger is ever met. The trigger has been weakened. This -- Congressional Budget Office says that there will only be a 13 percent reduction in illegal entry into the United States if this bill is passed, and we're going to have a large increase in legal immigration.

So, what have we done, if we have legal immigration, we have amnesty, or legalization, and no reduction of illegality? How is that good legislation? And that's what we're talking about. The Congressional Budget Office says that it won't fix the illegality. And that's -- they have been, basically, pretty friendly to the bill, in my opinion.

HOLMES: Well, sir, does it -- does it hurt you or bother you at all to be out there so strongly against this bill, when the president is so much for it, and certainly knowing he's the leader of your party, and being in the weakened political state that he is, and he could use a big win?

Is it kind of personally just tough for you to be out there going so much against something that you know the leader of your party needs?

SESSIONS: Well, I always find it -- I hate not to support President Bush.

He's coming to Alabama to me next week to campaign for me. And he made clear he was going to do that.

(LAUGHTER)

SESSIONS: And he's quite delightful.

But he -- this is something that I have studied very carefully. Our staffs have looked at it carefully. I don't believe this is good for America. I believe this is a bad bill that won't work, and that we can do it. We can write a good bill. And we need to cool off a little bit, and come back with better legislation, is what we need to do, and -- and get out of this political mode of thinking.

HOLMES: But, still, what I hear from you there, it sounds like you want this bill to go away. A lot of people had to come together, and it is a compromise. And a lot of people do call -- I know you're not a fan of calling it this -- but one of the best -- best chances for comprehensive reform.

But can this one be fixed? Are you willing to at least work with this one, or -- or you are done; you're through; you're not going to give this one a chance?

SESSIONS: I think you could fix it, but the group that's been promoting the bill, they have an agreement with each other that, if anyone offers an amendment that changes anything significant in it, they will vote against that amendment.

In fact, they have told me, Jeff, I like that amendment, but we have agreed. It goes against our agreement, and I can't support you on it.

So, what good is it to offer an amendment, if you have little or no chance of passing it?

HOLMES: All right. All right.

Well, Alabama Republican Senator Jeff Sessions disagrees with the president.

But you all are going to be hanging out next week in -- in your home state of Alabama.

So, sir, you will have a good time.

SESSIONS: Thank you.

HOLMES: Have a good conversation as well. Good to see you, sir.

SESSIONS: Thanks, T.J.

HOLMES: And stick here with us, folks. We're going to take a quick break.

We will be right back with more of the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Well, if we seem a little fidgety here in Atlanta today, this is the big reason why, a really big reason. And you're looking right at it right now.

An alligator at least six feet long is hanging out in the Chattahoochee River just running through the city. It's a popular place, by the way, where there's fly fishermen and runners, and T.J. and I walk the dog, you know.

HOLMES: Babies.

(LAUGHTER)

PHILLIPS: Babies in strollers...

HOLMES: Yes.

PHILLIPS: ... you know, minor things like that.

(LAUGHTER)

PHILLIPS: Well, a fisherman actually spotted it this morning, and says that the National Parks Service promises that it will trap the gator tomorrow. He recalled the moment that he first saw the reptile.

(BEGIN VIDEO CLIP)

NICK LAWRIMORE, LOCAL FISHERMAN: I was just sitting on this rock here behind us about 11:00 in the morning. It was just a typical day of fishing. This is where I come.

I was actually heading into the water, because I usually get in the water right here and walk out. And, before I even got in the water, I was just sitting here by myself and saw the alligator.

(END VIDEO CLIP)

PHILLIPS: Now, Hotlanta, as we all call it, attracts a lot of people, but it's not hot enough for alligators in Georgia. They're typically found just south of the so-called fall line. So, any gators found north of that area have probably been taken there by humans.

HOLMES: And they promised to catch it tomorrow, right?

PHILLIPS: Yes. So they say.

HOLMES: And we will have it live in the NEWSROOM.

PHILLIPS: Not the gator.

HOLMES: Not the gator.

(LAUGHTER)

PHILLIPS: The news.

(LAUGHTER)

HOLMES: OK.

Well, it could be a cool, cool summer, at least for those looking for a job.

Susan Lisovicz at the New York Stock Exchange, well employed, has the latest figures on hiring these days.

Hello there.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hello, T.J.

Well, the weather looks like it's going to be hot, perhaps not hot enough for that gator in Atlanta. But the outlook for hiring this summer is downright chilly. According to human resources firm Manpower, just 29 percent of employers plan to boost hiring during this year's third quarter. That's slightly less than last year.

More than half of those surveyed say they plan to leave things as is. Seven percent said they would cut jobs in the July-through- September period -- summer typically the best time of the year for hiring, according to Manpower. Employers are taking a wait-and-see approach this year, as the economic outlook for the rest of the year becomes more apparent.

Right now, there are a lot of things up in the air, including the direction of interest rates. Higher rates make it more expensive for companies to borrow money. And that means less to spend on workers, like us -- T.J.

HOLMES: That does not sound good. So, if we all end up out there pounding the pavement, looking for a job, well, certainly, those college grads, especially, well, what should you do? What are the tips for those folks?

LISOVICZ: Well, hiring, T.J., looks strongest in the West in coming months. So, it's not on this coast. Thirty-six percent of companies expect to add workers at a faster rate there, while employers in the Northeast and Midwest were least optimistic.

Employers in three industries, retail, mining, and public administration, say hiring will slow. Those in construction, manufacturing, transportation, and finance say they foresee no change in the hiring climate.

Anyone working on Wall Street these days should have a strong stomach, a roller-coaster ride last week, triple-digit losses Thursday, followed by triple-digit gains on Friday, no change yesterday -- today, the Dow back in the red, after briefly dipping into the positive column early this afternoon.

Check it out, the Dow back in the red, big time, off 89 points -- or 87 points, 13338. The Nasdaq, meanwhile, is down 18 points, or about two-thirds-of-a-percent.

We will find out if the bulls make another run in the next hour -- next half-hour. I will be back for the closing bell -- for now, T.J., back to you.

HOLMES: We will see you then. Thank you.

PHILLIPS: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.

HOLMES: And I'm T.J. Holmes.

One part over-the-counter medicine, one part heroin. It's a cheap high and a terribly risky one.

PHILLIPS: Nearly two dozen Texas teens have died after taking it. Now federal agents have joined local police to stop the spread of "cheese".

You're live in the CNN NEWSROOM.

First, though, remembering Kelsey Smith. A memorial service is under way in Leewood, Kansas, for the 18-year-old who was kidnapped and killed just over a week ago. A search was launched after surveillance cameras showed Smith being forced into her car in a store parking lot. Live pictures right now.

And you'll remember that her body was found three days later, about 20 miles away from where she was last seen.

Twenty-six -year-old Edwin Hall has been charged with first- degree murder and aggravated kidnapping.

HOLMES: Police have not found a link between the Kelsey Smith case and that of another missing teen in neighboring Missouri. But they haven't ruled one out either.

The family of 17-year-old Kara Kopetsky is holding a rally this afternoon. Kopetsky has been missing since May 4th. She was last seen at Belton High school, just blocks away from her home.

PHILLIPS: It's a new twist to an old highly-addictive drug: a deadly mixture of heroin and cold medications known as "cheese". It's attracting plenty of young users.

CNN's Ed Lavandera joins us now from our Dallas bureau.

Ed, you're working on this piece for "PAULA ZAHN NOW". It's going to air tonight.

What have you found out?

ED LAVANDERA, CNN CORRESPONDENT: Well, you know, this is kind of an interesting situation that's going on. Right now it's been mostly focused in Dallas, but what federal authorities are so worried about, is that it's such an easy mixture to do. That essentially if you're a drug user or know anything about drugs, you can figure out how to do this. So it can quickly spread all over the country. But really what they're concerned about is this is just a fascinating look at the way drugs are being marketed to younger and younger kids.

You know, before, people who -- officers who have gone into schools and talked about drug prevention and those type of issues have found, you know, that if you catch the kids around the middle school age, that you've gone a long way in helping those kids stay off of drugs. Now what they're finding, this "cheese" drug, which is concoction of cold and allergy medications like Tylenol PM or Benadryl, and the one ingredient in there, which is diphenhydramine, and that is mixed up with the old nasty drug heroin, that that is actually what they call "cheese" now.

You can see the pictures of it. And the reason they call it "cheese," is because this type of heroin doesn't have to be shot up. It can be snorted.

So the officers are saying that these drug pushers are going around to kids and they're saying, "Hey, you want to get some cheese?" It sounds a lot better than heroin, and on top of that they don't have to use the needle.

So they are getting kids 12, 11, even 10 and 9 years old that have been caught with this drug. It is a very scary situation.

Twenty-one kids in the Dallas area have died over the course of the last year and a half. One of those victims back in March, his name was 15-year-old Fernando Cortez. We spoke with his father, who told us it was the first time his kid had ever tried drugs, and he died that very night.

(BEGIN VIDEO CLIP)

FERNANDO CORTEZ, VICTIM'S FATHER: They make it sound like there's nothing wrong with it, you know? And they have no idea what's in it, you know?

Black tar heroin is a powerful drug, you know? And if you're -- you know, if these people -- they don't care. They -- they cut it with whatever they want. You know, and they just give it away, pretty much, you know, to try to hook them.

(END VIDEO CLIP)

LAVANDERA: And they are giving it away, Kyra. A hit of this "cheese" drug, as they call it, which is enough for like two lines, can cost as little as $2.

It's sold in little paper sacks that kids can stick in their pants and carry in to school. We talked to a couple of students who you'll hear from tonight who talk about how kids are doing three or four lines of this drug during the school a day, falling asleep in class.

Dallas police officers are going around to schools all over this city talking about this problem and alerting kids to what it is. That don't be misled by the word "cheese".

(BEGIN VIDEO CLIP)

MONTY MONCIBAIS, DALLAS POLICE DETECTIVE: They call it "cheese" because it has a cutesy name. Totally different if somebody said, "Do you want to buy some heroin?"

You say "cheese," oh, "cheese," well it's not heroin. And to a child that's 10 years old, 11 years old, 12 years old, they have no idea what they're even ingesting. So they call it "cheese". It can't be harmful, it's "cheese".

(END VIDEO CLIP)

LAVANDERA: And Kyra, to give you a sense of just how widespread the problem has become, here in Dallas -- two years ago, Dallas school officials reported about 90 kids were arrested within -- for possessing "cheese". This past school year, that number has jumped to 146.

We contacted drug treatment centers around the city as well, and they say that the number of calls from parents who are saying, hey, I think my kid is using this drug or is addicted to this drug have almost doubled.

PHILLIPS: Ed, you heard Fernando Cortez say it when you interviewed him, just how deadly heroin can be and what a dangerous drug that is, but then you combine it with these cold medications, I can just imagine the effects and how it becomes so deadly.

LAVANDERA: Well, it is deadly, because essentially, as one of the officers we talked to described it, it's a double whammy. Essentially, it's two suppressants, that it slows your body, because you don't know exactly how it's cut up and how it's mixed together. So you don't know how much of which you're getting.

But essentially, in Fernando Cortez's situation, we understand that what happened to him, he took too much and essentially just fell asleep and never woke up. That it sedates your body so much that your hearts just stops beating.

PHILLIPS: Ed Lavandera, we look forward to your report tonight on "cheese" addicts on "PAULA ZAHN NOW". It's at 8:00 Eastern.

Ed Lavandera, thanks so much.

HOLMES: Also coming up here, taking aim at those who text message behind the wheel. This is some tricky stuff. A lot of people are guilty of this. And it is -- it's dangerous.

It's not a good thing. I'm sorry, yes, you can tell, I'm guilty.

All right. More states working on laws for using their thumbs for something other than driving.

That's ahead in the NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: Well, we were going to show you some of Michael Moore's "Sicko". It's a (INAUDIBLE) take on the U.S. health care system. He's afraid you're not going to be able to see much of it. Moore says he fears the Bush administration might confiscate his latest creation, so he's gone to great lengths to protect it.

And CNN Entertainment Correspondent Brooke Anderson here to explain this for us.

Good afternoon to you, ma'am.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: Good afternoon to you, T.J.

Yes, Michael Moore was so concerned that the government might confiscate his movie that he actually squirreled away a master copy to Canada to ensure the film does get released later this month.

But I'm here today in Sacramento, the California state capital. Michael Moore is here. He's tackling the issue of U.S. health reform. He says the health care system needs a serious overhaul, and he is here in hopes to effect change. This, of course, in conjunction with the release of "Sicko," a scathing look at the U.S. health care industry, later this month.

Just a little while ago, Moore held a press briefing where he said he has three main objectives with his film, and also his visit here today. And those are he wants guaranteed health care for everybody; he wants profit-making insurance companies removed, eliminated; and he wants pharmaceutical companies to be regulated.

OK. After the press briefing, he went to another part of the Capitol to testify at a legislative briefing on health care reform. He's also expected to tout a state bill that's on the table. It's actually passed the Senate, under consideration by the assembly right now. But this ambitious bill proposes universal health care for all Californians.

At the press briefing, Moore said that he hopes this bill on the table in California set an example for the rest of the country.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, FILMMAKER: It's my sincere hope that California will once again lead the way in taking on the private, profit-making companies that are gouging the citizens of this state and this country to line their pockets at the expense of those who are sick, who are ill.

(END VIDEO CLIP)

ANDERSON: OK. After he does testify at the legislative briefing -- that hasn't quite happened yet -- he's in there waiting to speak his mind. But after that's done, Moore and about 1,000 nurses from all over the country and Canada, they'll all be dressed in red, they tell me, to make a statement. They will hold a rally on the steps of the Capitol behind me, and then they will march about four blocks to a theater for a special screening of "Sicko".

So, T.J., it really seems that Moore has shifted into high gear with his promotional push leading up to the release of the film June 29th.

HOLMES: All right. A promotional push, but what about the government's push to investigate him and possibly charge him with doing what he shouldn't have been doing to make this film happen? Where's that investigation right now?

ANDERSON: You're right. The federal government, the U.S. Treasury Department, is investigating Michael Moore. Here's what happened.

Moore in March took three ailing 9/11 rescue workers to Cuba to get medical treatment. Well, early May, Moore was sent a letter by the U.S. Treasury Department telling him that they were investigating whether he violated the trade embargo against that country that restricts travel there.

So he is under investigation. The U.S. Treasury Department tells us they don't comment on those investigations. But Moore and his attorney have filed a request under the Freedom of Information Act to receive all paperwork involved in that investigation. They want to know who's behind it, and what's motivated by it.

HOLMES: All right.

Brooke Anderson on the story there for us in Sacramento.

Good to see you.

PHILLIPS: Driven to distraction. Many states have cracked down on cell phone users. Now text messaging is under attack.

One state already has a law, Washington, where they call it DWT, driving while texting. And starting next year, that will get you $101 fine.

I wonder why it's $101.

HOLMES: Yes.

PHILLIPS: Yes.

Anyway, New Jersey, New York, Oregon and California have bills pending. California's law would specifically target teenagers.

HOLMES: Well, a work of the heart. A Florida sculpture grades (ph) a memorial that's much more than a mere statute, especially for the parents of a fallen soldier.

That is next in the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Well, all this year we're sharing good news in the form of good people. We call them "CNN Heroes".

And today we take you to Kabul, Afghanistan, where a world- renowned makeup artist has returned home to help the woman -- or women, rather, of his country build a future for themselves.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: And explain to me everything you want to explain.

MATIN MAULAWIZADA, "COMMUNITY CRUSADER": Afghanistan offered me a lot, and I want to bring a little something back. It's a tiny project, but I wanted to really make sure to bring something.

The Afghan women have survived years of war, years of oppression. Still they do. And they prevail. So, to me, the strength of Afghan women are just remarkable, and I wanted to work with them. Widows in particular rely on the mercy of their families, so they kind of become servants. And I wanted to change that one person at a time, if I could.

My entire point was to make sure that widows and women will be able to proudly work and be proud of their work, and work outside their house, and provide wealth for their families.

It's just amazing. It sells itself, really.

They read and write the equivalent of fourth grader now. Mentally, they're prepared to go to work. They know how to take measurements. They know how to do -- to write measurements. Once they learn enough, they will basically be businesswomen.

And look at the embroidery on this.

I'm hoping that I will send them to courses that they can actually manage a business, grow a business. My whole dream is for them to basically have the confidence to see beautiful objects that they're making, and knowing that people are enjoying and appreciating them.

They're doing the work. And all I'm offering is basically an opportunity for them to show what they have.

(END VIDEOTAPE)

PHILLIPS: Well, there's a lot more about Matin Maulawizada and his work on our Web site, where you can also nominate your hero for special recognition later this year. All the details are at cnn.com/heroes.

HOLMES: And when we come back, a look at two of America's fallen heroes, and a wrap of the action on Wall Street.

Stay here.

(COMMERCIAL BREAK)

HOLMES: Monuments and statutes on our heroes and historic events all across the country. Imagine if that statue in the town square was your son, a fallen soldier.

Reporter Julie Montanaro of CNN affiliate WCTV has the story of a moving tribute.

(BEGIN VIDEOTAPE)

CORKY AXELSON, NAVY SEAL'S FATHER: The detail is astounding.

JULIE MONTANARO, REPORTER, WCTV (voice over): His father calls the profile spot on, and his mother loves the curls peeking from beneath his hat. She couldn't help but grab his hand.

DONNA AXELSON, NAVY SEAL'S MOTHER: I held his hand a lot as he was growing up, and even as an adult. So it's just as natural not to touch him. But it is a very emotional experience.

C. AXELSON: Walking in, you know, just the other day here, seeing this live for the first time, I mean, it just like takes your breath away. It is Matt. You know, and it seems very strange sometimes thinking about, you know, a statute of your own son. But what it represents is really what's special. And it's all veterans.

MONTANARO: The slightly larger than life-size sculpture of Matthew Axelsson and his best friend, James Suh, is about to be cast in bronze. The two Navy Seals were among those killed on June 28, 2005, near the Afghan-Pakistani border. Matt, killed on the ground while seeking out a Taliban leader, and James killed in a helicopter trying to rescue him.

SANDY PROCTOR, SCULPTOR: I want it hung up here.

MONTANARO: Proctor's been working from photographs of the men and pictures of their clothing and equipment, hoping to capture every detail. It's taken two years. Two very emotional years.

PROCTOR: It's been difficult. You know, we've -- we've laughed. We've cried. We've -- there's been a bucket of tears, my gosh. But that's good.

I mean, you know, without that, I don't think you could do it. I don't think you would have the feeling, have the heart.

MONTANARO: The memorial should be in time in ready by Veterans Day. It will be placed in a park in Matt's hometown of Cupertino, California, a park where he used to play as a child.

D. AXELSON: I wanted to understand that both of these men were just ordinary people who valued freedom enough to put their life in harm's way, to protect the freedoms that I think in America we take for granted.

(END VIDEOTAPE)

HOLMES: And the sculpture honoring Matthew Axelson and James Suh is expected to be unveiled in November, along with a wall of honor and wall of remembrance for all of Cupertino, California's veterans.

(COMMERCIAL BREAK)

PHILLIPS: The closing bell about to ring on Wall Street.

(STOCK MARKET REPORT)

PHILLIPS: Straight to Wolf Blitzer and "THE SITUATION ROOM".

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